HYPE recently surged past $67, setting a new all-time high with a market cap exceeding $14 billion. The primary driver behind this rally is not merely heightened sentiment, but rather the sustained increase in trading activity on Hyperliquid, which has strengthened direct support through protocol revenue and token buybacks.
Trading growth drives buybacks
As trading volume on the platform increases, more fees flow into the Hyperliquid ecosystem. A portion of this revenue is used to automatically repurchase HYPE, linking token demand directly to platform usage.
The report noted that the protocol had previously used hundreds of millions of dollars in revenue to repurchase HYPE and permanently removed over 45 million tokens from circulation. This means that as trading volume grows, the market’s circulating supply continues to contract.
Market sentiment remains strongly positive.
After the price rose, market interest in the project intensified further. Some early holders who built their positions at lower levels achieved substantial returns, reinforcing the community’s bullish sentiment toward Hyperliquid.
Some traders reported that after accumulating positions in HYPE around $20, their paper returns have exceeded 2,000%. Such high-yield narratives often continue to attract capital in the short term but can also amplify volatility.
Prediction market plans are gaining attention
The market is also assessing the short-term pressure that increased supply could bring. Crypto user Moon Jeff noted that if more tokens enter the market, HYPE’s momentum could slow down temporarily.
However, he also mentioned that Hyperliquid is planning to launch a prediction markets product. If this product launches successfully and attracts new users, the platform’s trading scenarios could expand further, bringing new sources of demand to the ecosystem.
Overall, the market continues to focus on Hyperliquid’s genuine revenue-generating capacity, its ongoing buyback mechanism, and the expansion of its trading ecosystem. These factors together have supported HYPE’s record-breaking rally; however, profit-taking by some early holders after the sharp rise could increase short-term volatility.